Private residential market proved resilient and immune to the economic fallout of the Covid-19 pandemic - The Straits Times
While Singapore enter into recession in 2020, the private residential market in this land scarce island proved resilient and seem immune to the economic fallout of the Covid-19 pandemic.
In 2020, transaction volumes in both the primary and secondary sales market accounted for 9,982 units and 10,927 units respectively, edging out the new sales volume of 9,912 units and the resale total of 9,238 units in 2019. It is surprising that a year characterised by a pandemic-induced recession would perform better when compared against what would largely be considered as an ordinary one.
The rise in demand is partially spurred by Covid as we see an increased genuine need for young professionals both singles or couples to have their own private space instead of staying with their parents as Singapore entered into circuit breaker and adopted work from home measures - meaning more face time with extended family members at home.
In 2020, transaction volumes in both the primary and secondary sales market accounted for 9,982 units and 10,927 units respectively, edging out the new sales volume of 9,912 units and the resale total of 9,238 units in 2019. It is surprising that a year characterised by a pandemic-induced recession would perform better when compared against what would largely be considered as an ordinary one.
The rise in demand is partially spurred by Covid as we see an increased genuine need for young professionals both singles or couples to have their own private space instead of staying with their parents as Singapore entered into circuit breaker and adopted work from home measures - meaning more face time with extended family members at home.
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The increase domestic demand is real and represents a genuine need for local home buyers as we see a huge majority of domestic buyers as foreigners are largely left out of our borders during this Covid pandemic. Property analysts believe this spike in domestic demand was not anticipated by both the government and developers resulting in an imbalance of supply and demand as the supply could not meet this surge in domestic demand.
Singapore's residential enbloc land sales market saw a bit of action in the last quarter of 2020. Listed property developer Roxy-Pacific Holdings acquired 15 terraced houses in the Guillemard area for $93 million in November 2020. This makes it the largest collective sale in 2020 and brings the total number of reported collective sales this year to four, which is almost similar to 2019.
Singapore's residential enbloc land sales market saw a bit of action in the last quarter of 2020. Listed property developer Roxy-Pacific Holdings acquired 15 terraced houses in the Guillemard area for $93 million in November 2020. This makes it the largest collective sale in 2020 and brings the total number of reported collective sales this year to four, which is almost similar to 2019.
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Only five private residential and two executive condominium (EC) sites were awarded under the Government Land Sales (GLS) Programme in 2020, making for a mere total of about 2,625 future units. Compared to the seven private residential sites and two EC sites that were awarded in 2019, the likely numbers of units that can be developed from GLS sites bought in 2020 is 37.4% less than the potential of 4,195 units from GLS sites sold in 2019.
The first government land sales (GLS) tender last year at Tanah Merah Kechil Link after the lifting of the “circuit breaker” drew a whopping 15 bidders and a top bid of $930 psf per plot ratio (ppr). It was awarded to MCC Land on Nov 13 2020.
The first government land sales (GLS) tender last year at Tanah Merah Kechil Link after the lifting of the “circuit breaker” drew a whopping 15 bidders and a top bid of $930 psf per plot ratio (ppr). It was awarded to MCC Land on Nov 13 2020.
Putting aside the two-envelope system for the Holland Road GLS, the market has not seen such intense participation in a GLS tender since July 2017 where 15 bidders vied for a site at Woodleigh Lane. This is also the highest land bid for a GLS site in the Outside Central Region (OCR). It could be the palatable size and quantum, but the sheer number of bidders showed the hunger for land.
Most mass market projects launched in 2018 & 2019 have moved more than 60% of their units to date. This clearly shows the strong underlying de- mand for properties as people aspire to have a different lifestyle.
Kiwi Lim from Huttons Asia suggest that if the government does not release more land for Government Land Sales (GLS) for mass market condos, the supply for mass market new launch condo projects next year will offer very limited choices leading to higher resale transactions and a rise in resale prices.
Most mass market projects launched in 2018 & 2019 have moved more than 60% of their units to date. This clearly shows the strong underlying de- mand for properties as people aspire to have a different lifestyle.
Kiwi Lim from Huttons Asia suggest that if the government does not release more land for Government Land Sales (GLS) for mass market condos, the supply for mass market new launch condo projects next year will offer very limited choices leading to higher resale transactions and a rise in resale prices.
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